Mayfair on Cavell, Hobart
The main reason I recommend this place is that one of their "rooms" is actually an entire house. 2 bedrooms (if I recall correctly), with an extra single bed in the hall, and you can hire a crib (cot) if necessary. Also, there's a full kitchen, and a washing machine, and a nice enough sized living room. It's REALLY nice to be able to spread out and not have to cram into one little hotel room. If you can't get the house (Wellington Room), there are other rooms available that have more than one bedroom. Also, the price really can't be beat. 2 drawbacks - the furnishings are fairly old-fashioned, and it's probably too far outside the city to walk, especially if you have really little kids (it's very hilly). But in my experience, for a multi-day stay, it was well worth it.